NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
WOOLENS AND TRIMMINGS
(A Division of the Wholesaling or Distributing Trade)
AS APPROVED ON JULY 23, 1934
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Approved Code No. 201-Supplement No. 14
Registry No. 286-02
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Approved Code No. 201-Supplement No. 14
SUPPLEMENTARY CODE OF FAIR COMPETITION
WOOLENS AND TRIMMINGS DISTRIBUTING
As Approved on July 23, 1934
SUPPLEMENTAL CODE OF FAIR COMPETITION FOR THE WOOLENS AND
TRIMMINGS DISTRIBUTING TRADE
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Supple-
mental Code of Fair Competition for the Woolens and Trimmings
Distributing Trade to the Code of Fair Competition for the Whole-
saling or Distributing Trade, and hearings having been duly held
thereon and the annexed report on said Supplemental Code, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order lo. 6543-A, dated December
30, 193'3, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Supplemental Code complies
in all respects with the pertinent provisions and will promote the
policy and purposes of said Title of said Act; and do hereby order
that said Supplemental Code of Fair Competition be and it is hereby
approved; provided, however, that the provisions of Article IV,
Section 3 be and they hereby are stayed pending my further order.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
ROBERT L. HOUSTON,
July 23, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report of the Hearing on the Supplemental Code of
Fair Competition of the Woolens and Trimmings Distributing
Trade, conducted in the Green Room of the Raleigh Hotel on May
8, 1934. The Supplemental Code, which is attached, was presented
by duly qualified and authorized representatives of the Trade, com-
plying with the statutory requirements.
According to the census of Wholesale Distribution for the year
1929, there were 136 establishments distributing tailors' trimmings
and supplies, and employing 585 persons with annual net sales of
$11,327,000. However, this figure does not include the further break-
down by the census of Wholesale Distribution under woolens and
worsteds. Under this heading for 1929 there were 327 establish-
ments employing 2,548 people with annual net sales of $95,459,000.
The figures submitted by the Trade state that there are 225 con-
cerns employing 2,500 persons with aggregate annual sales of
$40,000,000. It is believed that the Trade's figures represent a fairly
true picture of the Trade as could be included under the definition of
this Supplemental Code.
PROVISIONS OF THE CODE
The provisions containing supplemental definitions are considered
inclusive and accurate.
The Administrative provisions supplementing the General Code
establish a Divisional Code Authority which is fairly and adequately
representative of all the different elements in the Trade.
The Trade Practice supplemental provisions are not considered in
any way objectionable.
The Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein set forth and on the basis of
all the proceedings in this matter;
I find that
(a) Said Supplemental Code is well designed to promote the
policies and purposes of Title I of the National Industrial Recovery
Act, including removal of obstructions to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof, and will provide for the general welfare by promoting the
organization of industry for the purpose of cooperative action
among trade groups, by inducing and maintaining united action
of labor and management under adequate governmental sanction and
supervision, by eliminating unfair competitive practices, by pro-
moting the fullest possible use of the present productive capacity of
industries, by avoiding undue restriction of production (except as
may be temporarily required), by increasing the consumption of
industrial and agricultural products through increasing purchasing
power, by reducing and relieving unemployment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Trade normally employs not more than 50,000 employees
and it is not classified by me as a major industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Title of said Act, including
without limitation Subsection (a) of Section 3, Subsection (a) of
Section 7 and Subsection (b) of Section 10 thereof; and that the
applicant association is a trade association truly representative of
the aforesaid Trade; and that said association imposes no inequi-
table restrictions on admission to membership therein.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and will not elim-
inate or oppress small enterprises and will not operate to discrim-
inate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to the approval of this
For these reasons, the Supplemental Code has been approved.
HUGH S. JOHNSON,
JULY 23, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE WOOLENS AND TRIMMINGS DISTRIBUTING
A DIVISION OF THE WHOLESALING OR DISTRIBUTING TRADE
To effectuate the policies of Title I of the National Industrial Re-
covery Act, this Supplemental Code is established as a Code of Fair
Competition for the Woolens and Trimmings Distributing Trade
pursuant to Article VI, Section 1 (c) of the Code of Fair Competi-
tion for the Wholesaling or Distributing Trade, approved by the
President of the United States on January 12, 1934. All provisions
of the said General Code which are not in conflict with the provisi-
sions of this Supplemental Code are hereby specifically incorporated
by reference in this Supplemental Code and made part hereof. Such
provisions of the General Code together with the provisions of this
Supplemental Code are the standards of fair competition for and
are binding upon every member of said Woolens and Trimmings
SUPPLEMENTING ARTICLE II OF THE GENERAL CODE
SECTION 1. Wlholereaer or Disthibutor.-The term Wholesaler"
or Distributor as used herein, shall be defined to mean any irn-
dividual, partnership, association, corporation, or other form of
enterprise or definitely organized division thereof organized for the
specific purpose of rendering a general distribution service, engaged
in the selling of Woolens and Trirmnings to Merchant Tailors
through the use of salesmen, advertising, catalogues, and/or other
sales promotion devices.
SECTION 2. The Trade.-The term the Trade" as used herein,
shall be defined to mean the business in which Wholesalers or Dis-
tributors as aibove defined, are engaged.
SECTION 3. Divisional Code Authority.-The term Divisional
Code Authority ", as used herein, shall be defined to mean the Divi-
sional Code Authority for the Woolens and Trimmings Distributing
Trade, a Division of the Wholesaling or Distributing Trade.
SECTION 4. General Code.-The term General Code ", as used
herein, shall be defined to mean the Code of Fair Competition for
the Wholesaling or Distributing Trade.
SECTION 5. Woolens and Trimmings.-The term Woolens and
Trimmings as used herein, shall be defined to include all types of
woolens and tailors trimmings and expendable supplies, customarily
used by Merchant Tailors.
SECTION 6. Merchant Tailors.-The term "Merchant Tailors" as
used herein, includes Merchant Tailors, Custom Tailors, Tailoring
Departments of retail or department stores and any retail establish-
ment where clothes are made or sold to the individual measurement.
SECTION 7. Season-.-The Spring Season as used herein, is de-
fined as commencing January 1, and expiring June 30th; and the
"Fall Season" is defined as commencing July 1 and expiring
SUPPLEMENTING ARTICLE VI OF THE GENERAL CODE
SECTION 1. (a) The Divisional Code Authority shall consist of
seven (7) members from among the Trade or representatives thereof,
five (5) to be selected by the Board of Directors of the National
Woolens & Trimmings Association; one (1) to be selected by the
Pacific Coast Woolens & Trimmings Association and one (1) to be
selected by the Administrator, to represent those members of the
Trade who are not members of either Association.
(b) The terms of office of members of the Divisional Code Au-
thority and the method of electing their successors, either for full
new terms or for unexpired terms, shall be established in the By-Laws
of the Divisional Code Authority.
SECTION 2. Subject to such rules and regulations as may be pre-
scribed by the Administrator, the Divisional Code Authority shall
have the following duties and powers in addition to those prescribed
in the General Code:
(a) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
Codes of Fair Competition as may be related to the Trade, except
other Supplemental Codes to the General Code, for the purpose of
formulating fair trade practices to govern the relationship between
production and distribution employers under this Supplemental Code
and under such others to the end that such fair trade practices may
be proposed to the Administrator as an amendment to this Supple-
mental Code and such other Codes of Fair Competition.
(b) To organize, elect officers, hire employees, and perform such
other acts as may be necessary for the purposes of administration of
this Supplemental Code.
(c) To adopt By-Laws and rules and regulations for its procedure.
(d) To use such Trade Associations and other agencies as it
deems proper for the carrying out of any of its activities provided
for herein; provided that nothing herein shall relieve the Divisional
Code Authority of its duties or responsibilities under this Supple-
mental Code and that such Trade Associations and Agencies shall
at all times be subject to and comply with the provisions hereof.
(e) To recommend to the Administrator any action or measures
deemed advisable, including further fair trade practice provisions
to govern members of the Trade in their relations with each other or
with other trades, measures for industrial planning, and stabiliza-
tion of employment; and including modifications of this Supple-
mental Code which shall become effective as part hereof upon ap-
proval by the Administrator after such notice and hearing as he may
(f) To obtain from members of the Trade such information and
reports as are required for the administration of the Supplemental
Code. In addition to information required to be submitted to the
General Code Authority and to the Divisional Code Authority mem-
bers of the Trade subject to this Supplemental Code shall furnish
such statistical information as the Administrator may deem neces-
sary for the purposes recited in Section 3 (a) of the Act, to such
federal and state agencies as he may designate; provided that noth-
ing in this Supplemental Code shall relieve any member of the Trade
of any existing obligations to furnish reports to any governmental
agency. No individual report shall be disclosed to any other member
of the Trade including Members of the Divisional Code Authority or
any other party except to such other governmental agencies as may
be directed by the Administrator. No such data or information
shall be published, except in combination with similar data, and in
sich manner as to avoid the disclosure of confidential information.
SECTION 3. It being found necessary in order to support the Ad-
ministration of this Supplemental Code and to maintain the stand-
ards of fair competition established hereunder and to effectuate the
policy of the Act, the Divisional Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing
purposes, and (2) an equitable basis upon which the funds necessary
to support such budget shall be contributed by members of the
(c) After such budget and basis of contribution have been ap-
proved by the Administrator to determine and obtain equitable
contribution as above set forth by all members of the Trade, and
to that end, if necessary, to institute legal proceedings therefore in its
SECTION 4. Each member of the Trade shall pay his or its equita-
ble contribution to the expenses of the maintenance of the Divisional
Code Authority, determined as hereinabove provided, and subject
to rules and regulations pertaining thereto issued by the Adminis-
trator. Only members of the Trade complying with the Code and
contributing to the expenses of its administration as hereinabove
provided, shall be entitled to participate in the selection of members
of the Divisional Code Authority or to receive the benefits of any
of its voluntary activities or to make use of any emblem or insignia
of the National Recovery Administration.
SECTIoN 5. The Divisional Code Authority shall neither incur nor
pay any obligation in excess of the amount thereof as estimated in its
approved budget, except upon approval of the Administrator; and
no subsequent budget shall contain any deficiency item for expendi-
tures in excess of prior budget estimates except those which the
Administrator shall have so approved.
SECToN 6. Nothing contained in this Supplemental Code shall con-
stitute the members of the Divisional Code Authority partners for
any purpose nor shall any member of the Divisional Code Authority
be liable in any manner to anyone for any act of any other member,
officer, agent, or employee of the Divisional Code Authority. Nor
shall any member of the Divisional Code Authority exercising rea-
sonable diligence in the conduct of his duties hereunder be liable to
anyone for any action or omission to act under this Supplemental
Code except for his own wilful misfeasance or non-feasance.
SECTION 7. If the Administrator shall determine that any action
of the Divisional Code Authority or any Agency thereof, may be
unfair or unjust or contrary to the public interest, the Adminis-
trator may require that such action be suspended to afford an oppor-
tunity for investigation of the merits of such action and for further
consideration by such Divisional Code Authority or Agency, pending
final action, which shall not be effective unless the Administrator
approves or unless he shall fail to disapprove after thirty (30) days'
notice to him of intention to proceed with such action in its original
or modified form.
SECTION 8. In order to assist in making effective the reports from
the Trade and in eliminating unfair competition, the Divisional
Code Authority shall, within one month after the effective date of
the Supplemental Code, appoint a committee so constituted as to
give producer, consumer, and governmental representation, to make
a study with a view to the establishment of classifications and stand-
ards of quality of products of the Trade, wherever such standards
are deemed feasible. The findings and recommendations of this
committee shall, within six months, be submitted to the Adminis-
trator, and after such hearings and investigations as he may desig-
nate, and upon approval by him, shall be made a part of this Supple-
mental Code and be binding upon every member of the Trade.
ARTICLE IV-TRADE PRACTICES
SUPPLEMENTING ARTICLE VII OF THE GENERAL CODE
SEFrTON 1. The following maximum terms, discounts and dating
shall prevail and any violation thereof shall be deemed a violation
of this Supplemental Code:
(a) Maximum terms and cash discounts shall be five per cent
(5%), ten (10) days; three per cent (3%), forty (40) days; net,
sixty (60) days.
(b) An Order, for woolens of less than thirty (30) yards, and/or
an order for trimmings, the total purchase price of which is less
than Seventy-five Dollars ($75.00), shipped prior to the twenty-
fifth (25) day of any month, may be dated as of the first day of
the following month.
(c) An Order, for woolens of less than thirty (30) yards, and/or
an order for trimmings, the total purchase price of which, is less
than Seventy-five Dollars ($75.00), shipped on or after the twenty-
fifth (25) day of any month, may be dated as of the first day of
the second month following.
(d) In addition to the dating provided for in paragraphs (b),
and (c), a Stock Order, for woolens of not less than thirty (30) yards
and/or a Stock Order for trimmings the total purchase ,price of
which is not less than Seventy-five Dollars ($75.00) shipped at one
time after March 1st, for the Spring Season and after September
1st for the Fall Season, may carry an additional thirty (30) days'
(e) An Advance Order for woolens of not less than thirty (30)
yards, and 'or an Advance Order for trimmings, the total pur-
chase price of which is not less than Seventy-Five Dollars ($75.00)
placed at one time and providing for one specified date of delivery,
may be dated April 1st for the Spring season for goods shipped on
or after January 1st of such season and October 1st for the Fall
season, for goods shipped on or after July 1st of such season.
(f) Members of the Trade shall charge interest on all past
due accounts at the rate of 6% per annum, unless the legal rate
be lower, in which case such lower rate shall prevail. Interest shall
be computed from maturity or from the 30th day after maturity.
(g) The rate allowed for Anticipation shall not be in excess of
six per cent (6%) per annum.
(h) The deduction of a cash discount is not allowable when pay-
ment is made by Note or Trade Acceptance.
SECTION 2. There shall be no discrimination in the price of woolens
and trimmings to Merchant Tailors. Goods shall be quoted or
priced on a net basis and no discounts shall be allowed therefrom
except discounts for cash payment provided for in paragraph (a)
Section 1 of this Article.
Provided, however, that nothing in this Section shall be construed
to prevent reasonable and fair price differentials from being allowed
on the basis of quantity purchased and.'or shipped and/or billed at
one time to a single buyer or on the basis of such other factors as the
Administrator shall deem proper.
SECTION 3. It shall be an unfair trade practice for any Whole-
saler to sell or offer to sell woolens and/or trimmings at such prices
or upon such terms or conditions of sale that the buyer will pay
less therefore than said Wholesaler's individual cost. Such cost
shall include the actual net invoice cost of the woolens or trimmings
to the Wholesaler plus transportation cost to the Wholesaler's ware-
house. Such cost shall further include actual wages for store labor
or labor involved in direct handling when determined in accordance
with an accounting formula to be determined by the Divisional Code
Authority and approved by the Administrator. Nothing herein con-
tained shall be construed to permit the Divisional Code Authority,
any agent thereof, or any member of the Trade to suggest uniform
additions, percentages or differentials or other uniform items of cost
which are designed to bring about arbitrary uniformity of costs or
Nothing contained in the above paragraph shall be interpreted to
prevent the sale below cost at prices necessary for their disposal of
discontinued lines from previous selling seasons, surplus merchan-
dise accumulated from previous selling seasons, or damaged mer-
chandise, or forced liquidation of current stocks due to financial em-
barrassment, provided that in such cases of forced liquidation the
approval of the Divisional Code Authority, subject to the disap-
proval of the Administrator, must be secured before such sale may
be made, and the member of the Trade shall certify that he is acting
in good faith.1
SECTION 4. No goods shall be delivered on consignment except
where the Divisional Code Authority may allow under circumstances
to be defined by it. Goods shall not be delivered on a sale or return
basis nor shall goods be delivered upon memorandum or for display
or otherwise for the purpose of evading the terms of this provision.
Nothing in this section shall be construed to prohibit the delivery
of samples not exceeding sixty-five (65) square inches in size.
SECTION 5. (a) All woolen lengths based on a fifty-six inch (56")
width or over, on double width six-quarters (6 4) goods and on a
twenty-eight inch (28") width or over on single width three-quar-
ters (%4) goods, must be measured not to exceed thirty-seven inches
(37") to the yard. All linings shall be measured not to exceed
thirty-six inches (36") to the yard.
(b) No claim may be allowed for short measure for any length
delivered measuring thirty-six inches (36") to the yard before being
(c) No allowances for short measure shall be made after the goods
are cut by the purchaser.
SECTION 6. Nothing contained in this Supplemental Code shall be
construed as preventing the establishment of higher prices for pur-
chases from samples than for purchases for stock.
SECTION 7. It shall be an unfair trade practice for members of
the Trade to give special personal use discounts, lower prices, gratui-
ties, or other merchandise to any Merchant Tailor, or any employee
of any Merchant Tailor.
This Supplemental Code and all the provisions thereof are ex-
pressly made subject to the right of the President, in accordance
with the provisions of sub-section (b) of Section 10 of the Act,
from time to time, to cancel or modify any order, approval, license,
rule or regulation issued under Title I of said Act.
ARTICLE VI-EFFECTIVE DATE
This Supplemental Code shall become effective on the 10th day
after its approval by the Administrator.
Approved Code No. 201-Supplement No. 14.
Registry No. 286-02.
1 Stayed-See paragraph 2 of order approving this Code.
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